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Australia’s largest infrastructure investor has bought stakes in three UK airports from Ontario Teachers’ Pension Plan, marking the latest deal in the travel industry as investors capitalise on a post-pandemic rebound.
Macquarie Asset Management said on Wednesday it had acquired 25 per cent of London City airport, a 55 per cent share in Bristol airport, as well as a 26.5 per cent stake in Birmingham airport. It did not disclose the value of the stakes.
The acquisitions come with Macquarie’s ownership of infrastructure assets in the UK under scrutiny as a result of the crisis at Thames Water, which amassed massive debts and regularly paid dividends during a decade-long ownership to 2017 by the Australian investor.
Macquarie said the airports offered “unique propositions and catchment areas which present significant growth opportunities” and that it was committed to helping airlines expand their route networks.
The sale of Ontario Teachers’ stake in London City has completed, while the Birmingham and Bristol airport deals are subject to regulatory approval and are expected to complete by the end of this year.
Ontario Teachers acquired its holdings in Birmingham and Bristol in 2007 and 2008, respectively, before adding its share of London City in 2016.
The Macquarie deals follow a spate of transactions in the UK’s airport sector. US private equity group Blackstone struck a £235mn deal with Canadian pension investor PSP in March for a 22 per cent stake in the owner of the Aberdeen, Glasgow and Southhampton airports.
Private investors have also backed several other UK airports, including London’s Heathrow and Gatwick. Spanish construction company Ferrovial agreed last year to sell the majority of its stake in Heathrow to private equity group Ardian and Saudi Arabia’s sovereign wealth fund.
The Labour government has made airport expansion one of its areas of focus, with four out of London’s five major airports seeking to expand. London City airport received permission to expand its passenger numbers by more than a third last August.
